Alt Doc Refinance
Alt Doc Refinance is the process of replacing an existing home loan or commercial property loan with a new one, using alternative documentation — such as BAS, accountant letters, or bank statements — instead of full tax returns to verify income. It allows self-employed borrowers to access better rates, consolidate debt, or release equity without producing full financial statements.
Why It Matters
Self-employed borrowers who originally obtained a loan under alt doc or low doc conditions may be paying higher rates than necessary. An Alt Doc Refinance lets them move to a more competitive product without needing to produce full tax returns. It's also the pathway for accessing equity through a Cash Out Refinance or Equity Release when full financials aren't available. This is a property-specific process — for asset refinance on vehicles or equipment, see Low Doc Asset Finance.
How It Works
- You identify a refinancing goal — lower rate, debt consolidation, or equity access.
- You provide alternative income documentation (BAS, accountant letter, or bank statements).
- The new lender values your property and calculates the LVR.
- If servicing passes on the new loan amount, the refinance is approved.
- The new lender pays out your existing loan at settlement, and you begin repayments on the new facility.
Common Use Cases
- Reducing interest rates on an existing alt doc or low doc home loan
- Consolidating personal and business debts into a single property-secured facility
- Accessing equity for business investment or renovations via cash out
- Switching from a non-bank lender to a bank product with better terms
- Removing a guarantor or co-borrower from an existing loan structure
Related Switchboard Resources
For guidance on comparing home loan products, visit moneysmart.gov.au.